BRE Advisory on Salesperson Owned Fictitious Business Names & Team Names

The California Bureau of Real Estate (BRE) has issued an advisory concerning salesperson owned fictitious business names (FBN) and team names.  Per the requirements of Assembly Bill 2018, brokers are allowed to permit salespersons licensed to them to—on behalf of the broker—apply for a Fictitious Business Name (FBN), then to deliver to BRE a FBN application signed by the salesperson and the broker, and to pay for and maintain the ownership of the FBN.

To facilitate this process, BRE has issued a new form: "Add/Cancel Salesperson Owned Fictitious Business Name" (RE 247). The form also has instructions clarifying how Team Names meeting the criteria outlined in the instructions but are not FBNs. Two or more licensees work together as part of a "team", "group", or "association"; the team name includes the surname of at least one of the team, group, or association members; the name does not include terms such as broker or brokerage.

However, when a team name is used in advertising, including print or electronic and "for sale" signs, it must:

1. Include the licensee's name and license number.
2. Include the responsible broker's identity.
3. Not imply the existence of a real estate entity independent from the responsible broker.